With half of the new businesses failing within five years, it’s no wonder that money plays an integral role. But is it true for the blogging business too?
The inflow and outflow of the funds play a huge role in the success of your blog. Being not able to make enough money is one of the top reasons blogs don’t survive. So, this is a critical aspect to pay attention to your blogging business.
In this article, we will see what you can do to keep your blogging business running and make it a consistent source of profit.
Spend Money on Quality Not Quantity
This is a double-edged sword for many, as all business owners including bloggers want their money to grow as much as possible.
It does require some sacrifice to ensure things run smoothly, and this could mean investing in responsive themes, buying a great hosting plan, having access to superb plugins and subscribing to other services that provide optimal support.
These will go a long way to ensure that the blog remains sustainable. The trick is to remain within budget to ensure that there is enough cash to maintain the blog and possibly even the lifestyle of the blogger.
Know the Break-Even Point of the Blog
It’s not just enough to know the sales figures of your blogging business. As an webmaster you should also be aware of the break-even point.
This is where the income is sufficient to meet the expenses, but the blog is not yet turning a profit. Many get stuck in the area before break-even or even just on it for a number of years without any real chance of moving forward.
It’s important that the cash-flow cover the cost of the blog in order to make money blogging.
A Separate Account May Prove to be a Cashflow Asset
It could be difficult to keep your personal and blogging money separate when everything is running through a single account. A simple solution is to split the funds and only pay over funds to the personal transactional account when the business expenses have been met.
It’s also important to save funds for the business, which means all the profit shouldn’t just go into the blogger’s account. This will ensure business continuity during those slow months.
Some of the aspects that could affect your blogging income include:
- Unplanned illness or time away on vacation
- Seasonal blogs that are negatively affected by seasonal changes, holidays, weekends and more
- A growth spurt that cannot be managed in time, resulting in lost customers
Bloggers Need a Healthy Cashflow to Remain Motivated
There is nothing that slows down motivation than a continuous lack of funds in a business. You must be disciplined to maintain a steady cashflow, but at the same time the monetary reward is a motivation to carry on blogging.
A blog that is continuously running at a deficit may just prevent a blogger from giving it his/ her best.
Put a Budget in Place
When the money comes in, it’s a free-for-all and expenses are paid on a first-come basis. This is dangerous, as regular payments on all items are required to ensure good business relationships.
When there is a budget in place, you will be able to determine exactly where the money is going and also how much is needed to meet the payments. Without this, it’s very hard to stick to a strict routine where payments are concerned.
Blogging Businesses Require Cashflow to Grow
Whether you require funds to set up your next blog or just incorporate a new product, you need funds to get things off the ground.
New revenue streams may require that initial capital injection, but when it takes off it should pay for itself, with a little bit extra. And this should then fund the next income stream.
Once a Bad Cashflow Cycle Starts It’s Hard to Get Out
Many businesses have a certain ceiling they can reach in terms of sales, which is also true for blogging businesses.
This means that making up for poor cashflow in the next month is not only unlikely, it also places unnecessary pressure on your blog.
Furthermore, it can take the blog months to recover from a bad cashflow period which can slow down the growth. It also has the potential to shut it down entirely.
Know What Things Cost
Whether this is hosting fees or just typical loan repayments, not having accurate figures may set the blogging business back.
It is important to ensure that all figures quoted include taxes, blog expenditure, and other costs. When it comes to understanding about business finance, repayment calculators go a long way.
Emergencies are Not Easy to Ward off without Cashflow
It’s important to prepare for every eventuality in a blog and that includes an emergency. Whether this is a successful hack or a server crash, funds are often required to get things running again.
If you are running a blog on WordPress, this could mean paying a WordPress specialist to restore things to the way they were before.
It could also mean paying damages in situations of the blog violating a law, such as copyright infringement.
This easily happens where bloggers use images or infographics without taking permission from the image owner. You must use the copyright-free images, to avoid such situations.
Great Opportunities Might Pop Up Any Minute
Some opportunities are just too hard to pass by and discounted blogging products is just one of them.
Every once in a while a group of blogging products becomes available at a fraction of the price and Black Friday is one such time of the year.
So, to not have access due to poor cashflow could lead to missed opportunities. This also includes collaboration with other bloggers where some funds are required to set up a conference or joint workshop.
Blogging Business Cashflow: Understand What it Takes to Make Money
One of the biggest reasons online businesses don’t make money is because they don’t understand what it takes for the first sale and subsequent sales to take place.
These things include being in the right niche and offering your audience something they will want to opt-in.
It is also important to not just rely on freebies, as freebies don’t pay the bills. Cashflow should take a front-and-center seat in a blog to ensure its longevity and continuation.
Without proper cash flow, bloggers will find it difficult to make improvements and allow their blog to grow. What do you think about this? Please feel free to share your thoughts about the need for consistent cashflow in blogging businesses.